The Physical Count of Inventory of Clyers Pty Ltd, a Medium-Sized

question 31

Multiple Choice

The physical count of inventory of Clyers Pty Ltd, a medium-sized retailer, was higher than shown by the perpetual records.Which of the following could explain the difference?

• A)Credit memos for several items returned by customers had not been recorded.
• B)Inventory items had been counted but the tags placed on the items had not been taken off the items and added to the inventory accumulation sheets.
• C)An item purchased 'FOB shipping point' had not arrived at the date of the inventory count and had not been reflected in the perpetual records.
• D)No journal entry had been made on the retailer's books for several items that the retailer returned to its suppliers.

---

Definitions:

Stereotypical Assumption

A generalized and oversimplified belief about a particular group or type of individuals.

Laundry Soap

A cleaning agent, specifically designed for washing clothes, that helps remove dirt and stains.

External Validity

The degree to which the results of a study can be generalized to other situations, populations, or time periods.

Internal Validity

The degree to which research can show a direct link between variables, unaffected by outside factors.